Aldes Business Brokers

Summary

Great opportunity for an owner operator to take over a niche operating store that is easy to operate and has fantastic growth potential for a hands-on owner.

1. History Background

Fully describe the business's activities?

Kids Retail Store, selling Furniture, Decor and Linen

How long has the business been established?

3 years

How long has the owner had the business?

since inception

2. Present Market

How does the business operate on a daily basis?

Stock is made up locally, and the store is part of a 3 store chain, buyer will be expected to sign a franchise agreement, although there are no franchise fees, there will be a joint marketing and buying initiative.

How are the clients attracted to the business?

Position of the store, advertising and word of mouth

What Advertising/Marketing is carried out?

Local newspapers, Flyers, Website

Does the business have any contract work?

no

What competition exists?

no comparitive offering in the area.

What are the seasonal trends?

fairly constant throughout the year

3. Financial

Is the business VAT Registered?

yes

What VAT documentation is on file?

vat returns

Are there up-to-date Management Accounts available?

yes

What Balance Sheet and Income Statements are available?

Balance sheet in CC, which consists of all 3 stores

What percentage of the business is cash/credit?

80 % CC, 20 % cash and EFT

How could the profitability of the business be improved?

more advertising

Is Seller finance available and for what amount?

will be discussed with qualified buyers.

What is the payback period?

26 months

What is the ROI?

46%

4. Staffing

What is the total staff complement?

One Manager, one casual for weekend work. Delivery driver and assistant shared between the stores. For the purposes of this offering the assumption is that there will be a monthly savings of R 5,000 due to the fact that an owner operator will be fully involved. It is assumed that there will be an assistant manager and some casual staff.

Give a breakdown of staff/functions/length of service?

Manager oversees the complete functioning of the store. Casual staff do mainly sales.

Do any receive special perks or incentives?

Incentive for manager

Are they on contract?

yes

Do any have management potential?

manager

How involved is the Owner in running the business?

Owner manages the brand and basically oversees all 3 stores.

5. Premises

When does the current lease end?

April 2016

Is there an option of renewal & what period?

yes, 5 years

What is the annual escalation %?

9%

What are the trading hours?

Mon to Fri 9 am to 5 pm Sat 9 am to 2 pm Sun 9:30 am to 1:30 pm

What is the square meters of the business?

210 m2

Is a copy of the lease available?

yes

Do you require a licence?

no

What lease deposit and/or other surety is required?

1 month rental and owner must sign surety

6. Assets

Is a full asset list on file?

yes

Are any items not included in the sale?

no

What is their overall condition?

excellent

Do any require repairing?

no

How have they been valued ?

owners valuation

Are they presently insured?

yes

7. S.W.O.T. Analysis

Strengths?

Not over traded, Niche Market. Offers a variety of options. Value for money. Good GP

Weaknesses?

Owner is not involved enough on ground level of the shop

Opportunities?

opportunity to grow Brand into other areas. More Brand awareness will grow turnover

Threats?

no threats identified

8. Reason For Sale

What is the reason for the sale?

Owner would like to concentrate on growing the Brand, which would be good for all stores.

9. Conclusion

Why is this a good business?

Easy to operate, Huge opportunity to grow the business through more owner involvement. Good Investment, Niche Market and good GP's. Last but not least, good growth opportunities.

What is the price plus stock and the net profit?

R 480,000 including stock and assets. R 18,000 monthly profit on average.